What a difference a year can make.

Wrangell businesses were the second-most pessimistic about their future in last year’s annual survey of Southeast communities, trailing only Gustavus for a dark outlook.

This year’s survey, conducted in April and released last month, shows a stark reversal.

“Wrangell stands out for its dramatic shift in sentiment, moving from among the weakest outlooks in recent years to one of the strongest in 2026,” according to the report, prepared by Juneau-based Rain Coast Data, which has been analyzing the region’s economy since 2010 in annual reports for the Southeast Conference.

“I did not expect to see Wrangell go from the bottom to the top,” said Kate Thomas, the borough’s economic development director.

She had anticipated seeing support in this year’s survey for the borough’s economic expansion efforts, particularly working toward developing a deepwater port industrial park at the former 6-Mile Mill property.

The municipality’s goal is to gather enough state and federal funding for its private-sector partner in the project, JAG Marine Group, to build and operate a large-scale shipyard at the site.

The borough purchased the former sawmill property — about 42 acres — for $2.5 million in 2022, striking a deal last year with Tideline Construction to clear, clean up and level the property, getting it ready for other users.

The municipality invested $550,000 this year for its share of a feasibility study with JAG Marine Group to determine the cost and possible layout of a shipyard operation, piers and upland service areas at the site.

And the borough has signed a lease with Alaska Marine Lines to relocate its barge landing and freight operations to the 6-Mile site, with AML currently working out its plans and schedule.

“Wrangell’s improved outlook appears tied to expanding economic development opportunities and infrastructure investment,” according to the Southeast Alaska Business Climate Report 2026.

“What you really have is that the community is just moving in this comprehensive, positive direction,” Meilani Schijvens, owner of Rain Coast Data, said in an interview last month. Other Wrangell projects include adding to the downtown waterfront fill to accommodate a privately owned new dock for small cruise ships.

Rain Coast Data is working under a contract with the borough to prepare a cost-benefit analysis for the shipyard funding requests to state and federal agencies, Thomas said last week.

The Southeast economics data firm also is working on its annual report of Wrangell’s visitor industry, which is expected later this fall.

When asked in the springtime survey, “How do you view the overall business climate right now?” 69% of Wrangell businesses responded “good,” putting the community in the top half of Southeast.

When asked, “What is the economic outlook for your business or industry?” 42% of respondents in Wrangell said “better” or “much better,” trailing only Hoonah in that category. Hoonah Totem Corp.’s Icy Strait Point cruise ship destination continues to grow, with more than 500,000 passengers expected this year.

About 11% of all the responses to the Southeastwide survey, 39 out of 360, which was voluntary and conducted online, came from Wrangell businesses, a disproportionate number for a community with about 3% of the region’s population.

“Wrangell businesses are kind of attuned to this thing,” Thomas said of the heavier response rate.

The borough had actively promoted the survey, reminding businesses to participate.

Overall in Southeast, businesspeople are collectively feeling a bit more optimistic this year, following a sharp drop in mood last year, but mindsets vary considerably within communities and industries, according to the report.

Ongoing seafood industry struggles are causing pessimism in Petersburg. Business is good for mining, real estate and tourism.

The 62% of respondents with a positive view of the region’s business climate is up 2% from 2025, but below the 67% reported in 2024. 

“Last year I was surprised to see just how poor the economic outlook was,” Schijvens said. This year “it was just really heartening, I thought, to see there be a real movement … in terms of people who think their business or industry is getting much better or much better, and then a decline of those who feel their business or industry is getting worse or much worse.”

The Rain Coast Data study reported that 15% of Southeast Alaska respondents plan to grow their workforce during the coming year, while 14% plan to cut jobs. It notes “job growth expectations are strongest in Hoonah and Sitka.”

Primary business concerns in the Rain Coast Data study, according to an introductory summary, are rising costs and workforce challenges.

“Fuel, freight, insurance, utilities and labor costs were among the most frequently cited barriers,” the summary stated. “Housing availability and workforce recruitment continue to limit business expansion and employee retention, particularly in seasonal and skilled industries.”

Yakutat topped the 2026 rankings with 100% of the six respondents from that community saying they feel positive about the current business climate, followed by Sitka (84%), Skagway (82%) and Prince of Wales Island (80%). Those were the same top four as a year ago, but in a different order.

The highest pessimism scores for economic mood were Gustavus (62%), Petersburg (53%) and Haines (52%). Petersburg also had the gloomiest future outlook among communities.

“My take is it’s low for two reasons,” Schijvens said about Petersburg. “One, it’s not a port that has large cruise ships coming to it. It has smaller-size cruise ships. … Also, Petersburg is really driven by its seafood community. And we’ve had several tough years when it comes to the seafood sector.”